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Highlights
- Viva Leisure (VVA) has acquired a 25% stake in World Gym Australia.
- The acquisition adds 169,000 members and three Queensland franchises to its network.
- Strategic investment aligns with Viva's technology-driven growth plans.
In a significant move for the Australian fitness industry, Viva Leisure (ASX:VVA) has acquired a 25% stake in World Gym Australia. This strategic investment also includes the purchase of three franchise locations in Queensland: Stafford, Coomera, and Underwood. The acquisition strengthens Viva’s portfolio by integrating big-box gym formats into its operations, offering a scalable platform for further statewide growth.
The $16.7 million transaction, expected to close by early 2025, aims to create what is described as the largest and most diversified fitness network in the country. The deal will add 169,000 new members to Viva Leisure's network, increasing its total membership base to over 587,000 across more than 450 locations.
Acquisition Details
The acquisition will be funded through Viva's existing cash reserves, banking facilities, and up to $1 million in company shares. Additionally, the agreement includes a call option for Viva to acquire the remaining 75% of World Gym Australia within the next three years. A 50:50 joint venture option with World Gym’s founders to develop more corporate locations is also part of the deal.
World Gym Australia generates over $26 million in annual retail sales from merchandise and supplements, which will further diversify Viva’s revenue streams.
Technology-Driven Integration
A core element of this partnership is the integration of Viva's proprietary technology into World Gym Australia’s operations. Key platforms such as The Hub member management system, VivaPay payment processing, and the upcoming Viva Pass will be implemented to drive operational efficiencies and unlock new revenue opportunities.
The VivaPay system is expected to process transactions exceeding $140 million annually across the three acquired franchises. These integrations reflect Viva Leisure’s commitment to a seamless, technology-enabled fitness experience for its members.
A Growing Fitness Empire
This acquisition marks Viva Leisure’s second-largest deal after its 2020 purchase of Plus Fitness health clubs, which added 197 locations and 175,000 members to its portfolio. The company’s strategic investments in diverse gym formats and boutique fitness studios have solidified its position as a leader in the fitness sector.
Additionally, Viva’s recent $2 million investment in Boutique Fitness Studios, which owns brands like Rumble Boxing and Club Pilates, demonstrates its focus on diversifying member experiences while enhancing operational efficiency.
Through these strategic moves, Viva Leisure (VVA) continues to strengthen its foothold in the fitness industry, offering a broad range of fitness solutions and technologies to meet evolving member needs.
